Former Unlicensed Contractor Helps CSLB Sting His Competition

Investigators use tip to catch phony contractor with arrest warrant at undercover sting in Merced

SACRAMENTO — Jose De Jesus Escobar showed up at a house near Merced College on a chilly morning last week to give homeowners a bid for landscaping work. But, instead of getting the job he bid $3,600 for, Escobar got a free ride to jail.

Escobar was one of four suspects to get a notice to appear (NTA) after getting caught in an undercover sting by investigators from the Contractors State License Board’s (CSLB) Statewide Investigative Fraud Team (SWIFT), in partnership with the Merced County District Attorney’s Office.

CSLB investigators were tipped to Escobar by a former illegal contractor, who’s now operating legally as a licensed contractor. Escobar was taken to jail on a no-bail arrest warrant from Colusa County for violating probation after a driving under the influence conviction.

Four suspects, including Escobar, received notices to appear in court to face a misdemeanor charge of contracting without a license (Business and Professions Code section 7028). Home improvement projects valued at $500 or more in labor and materials must be done by a state-licensed contractor. Three of the four will face an additional misdemeanor charge or illegal advertising (Business and Professions Code section 7027.1). California law requires contractors to put their license number in all advertisements. Those who contract for jobs valued at less than $500 may advertise their services, but their ads must state that they are not a licensed contractor. Two suspects were contacted through their ads on craigslist.org.

Additionally, Abelino Mauro Lopez-Ramos was cited for requesting an excessive down payment (Business and Professions Code section 7159.5 (a)(3)(b)). State law prohibits asking for or receiving down payments larger than 10 percent of the contract price or $1,000, whichever is less. Lopez-Ramos submitted bid for a new HVAC system that totaled more than $4,000, and asked for 50% down.

"It only takes a few minutes for homeowners to make sure the person they’re considering to do work on their property is properly licensed," said CSLB Registrar Steve Sands. "CSLB’s instant license check would have shown that the people caught in this sting didn’t have a valid license."

Don't pay more than 10 percent or $1,000, whichever is less, as a down payment. There is an exception for about two dozen licensees who carry special bonds to protect consumers. These exceptions are noted on CSLB's website.

Don't pay in cash, and don't let payments get ahead of the work.

Get at least three bids, check references, and get a written contract with signed change orders for any additions or amendments to the contract.

The Contractors State License Board licenses and regulates California's 300,000 contractors, operating under the umbrella of the California Department of Consumer Affairs. It is regarded as one of the leading consumer protection agencies in the United States. In fiscal year 2011-12, CSLB helped recover nearly $36 million in ordered restitution for consumers. More information and publications about hiring contractors are available on CSLB's website or by calling (800) 321-CSLB (2752). You also can sign up to receive automatic CSLB email alerts.

This Google translation feature is provided for informational purposes only; CSLB is unable to guarantee the accuracy of this translation. Please consult a professional translator for accuracy if you are using this site for official business.